This Time Next Year - New Year's Resolutions

When you write out your New Year's Resolutions, does it just say “Stop spending”? “Get out of debt”? These sorts of goals can be overwhelming and vague.

Let’s get one thing straight: setting goals about managing your money is a great practice. And now, at the end of the year, it’s a great time to make new commitments to yourself and to your future. Vague goals like the ones above are not going to help you take control of your money. Let me give you an example of three money management goals that actually will help you start feeling power in your money.

Goal: I will keep track of my spending.

When you’re not keeping a detailed account of where every dollar is going, it feels like a gamble to look at your bank account. Will it be high or low today? Maybe you’re like one of my friends, who simply stopped checking the balance in his account because just looking at his expenditures was stressful.

A great goal to start off the year is to keep track. Start by looking at last month’s report. What did you spend the most on? What expenses happened regularly--daily or weekly? Was there anything that surprised you?

Set a goal to look at your account at least once every two weeks. You’ll feel like you have a better idea of how things are getting spent.

Goal: I will save money for __X__ by _day_, _month_, 2023.

Many experts recommend setting S.M.A.R.T. goals: specific, measurable, achievable, relevant, and time-specific. It’s not enough to set a goal to “save.” What is “saving?” What are we saving for? When will we save by? With a goal this nebulous, it’s easy to defer responsibility.

It would be SMART-er (heh, get it?) to set a goal for a specific project, and a specific day. Save up for a big night out, save up for one extra credit card payment, or save up for that extra car repair. Decide what you will save for, how much you will save per check, and when you will have it completed. Having a specific saving goal will keep you organized and give you motivation to get it done by the set date.

Goal: Set up an appointment with a financial coach.

A financial coaching session is a great way to start your year. You are already in the mindset of reflecting over the year: what did you do well? Where could you improve? You are already thinking ahead about how next year can be better.

Talk to a financial coach about where your finances are sitting right now. Set goals for where you want to be this time next year. We can make projections for payments, set specific monthly goals, and teach you new practices so that you can start 2023 fresh. Having someone else look at your financial life might help you mentally clarify and improve your mindset for another’s year worth of income.

So, my friends, don’t set meaningless money goals. Let’s get specific and manageable for our 2023. For a free consultation with Ben at Checkpoint, click here. Wishing you happy festivities and a great transition to the new year.

Kate Platt is a freelance writer. Check her out at www.plattliterature.com